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TASTY BAKING COMPANY RELEASES THIRD QUARTER RESULTS; PHILLIPS & JACOBS, INC. SPIN OFF COMPLETE; EARNINGS EQUAL TO THIRD QUARTER OF 1992

 PHILADELPHIA, Oct. 21 /PRNewswire/ -- Tasty Baking Company (AMEX: TBC) reported today that income from continuing operations before cumulative effect of changes in accounting principles, for the third quarter of 1993 was $810,000 or $.13 per share which compares to $810,000 earned in the third quarter of 1992, also $.13 per share.
 Net sales from continuing operations for the 13 week period ended Sept. 25, 1993, were $31,152,000, a decrease of 5.6 percent compared to $33,015,000 for the comparable quarter of 1992. For the 39 week period ended Sept. 25, 1993, net sales from continuing operations were $101,451,000, a decrease of 2.7 percent compared to $104,269,000 for the comparable period of 1992.
 For the 39 weeks ended Sept. 25, 1993, income from continuing operations before cumulative effect of changes in accounting principles was $4,105,000 or $.67 per share compared to $3,758,000 or $.62 per share for the comparable period of 1992, representing increases of 9 percent and 8 percent, respectively.
 Effective Aug. 1, 1993, Tasty Baking Company completed the spin off of its wholly owned subsidiary, Phillips & Jacobs, Incorporated. The following consolidated highlights of operating results reflects the results of operations of Phillips & Jacobs, Incorporated as a discontinued operation of Tasty Baking Company. In addition, a provision for the cost of the spin off, net of income taxes, has also been provided.
 Carl S. Watts, president and chief executive officer, stated in a letter to shareholders that in the third quarter, sales were impacted by record setting hot weather, a relatively soft economy and strong competitive activity. Watts stated, "These factors coupled with an unusually soft back-to-school sales period resulted in an income level which was below our goals. However, management was able to continue its effective control of operating and fixed expenses and with the benefit of stable commodity costs achieved earnings that were equal to the third quarter of 1992."
 Watts continued, "Management is committed to implement our strategy to expand geographically and to this end has instituted distribution to Fry's supermarkets in Phoenix, Arizona. Through a new distribution arrangement we have also expanded our product into northern Florida and southern Georgia. Early results are positive.
 "Continuing the development of new products, management is planning to introduce two new varieties during the fourth quarter of 1993 -- a Junior-shaped pound cake and a blueberry mini-muffin," Watts said.
 On Oct. 15, 1993, the board of directors increased the quarterly dividend by 4 percent from 12-1/2 cents to 13 cents per share. The dividend will be paid on Dec. 1, 1993, to shareholders of record on Nov. 5.
 In conclusion, Watts stated, "It would be unrealistic not to recognize the persistent softness in the economy. However, we are optimistic that we will finish the year on a positive note."
 TASTY BAKING CO. AND SUBSIDIARIES
 Consolidated Highlights of Operating Results
 (Unaudited)
 Periods ended 13 weeks 39 weeks
 9/25/93 9/26/92 9/25/93 9/26/92
 Net sales $31,151,512 $33,015,156 $101,450,510 $104,269,317
 Cost of sales 18,971,186 20,630,001 60,719,778 63,911,256
 Depreciation and
 operating
 expenses 11,357,444 11,598,445 35,570,705 35,805,717
 Interest expense and
 other (income), net (591,196) (536,959) (1,828,749) (1,651,614)
 Total 29,737,434 31,691,487 94,461,734 98,065,359
 Income before provision
 for income taxes 1,414,078 1,323,669 6,988,776 6,203,958
 Provision for
 income taxes (603,771) (513,315) (2,883,480) (2,446,328)
 Income from continuing
 operations before
 cumulative effect
 of changes in
 accounting principles 810,307 810,354 4,105,296 3,757,630
 Discontinued operations: (A)
 Net income from spun
 off subsidiary 253,887 878,986 2,253,366 2,625,074
 Provision for cost of
 spin-off, net of
 income taxes (804,569) --- (804,569) ---
 Cumulative effect of
 changes in accounting
 on spun-off
 subsidiary --- --- (805,264) ---
 Income before cumulative
 effect of changes in
 accounting
 principles 259,625 1,689,340 4,748,829 6,382,704
 Cumulative effect on
 prior years of changes in
 accounting principles for:
 Income taxes --- --- 1,003,507 ---
 Postretirement benefits
 other than pension --- --- (11,708,989) ---
 Net income (loss) 259,625 1,689,340 (5,956,653) 6,382,704
 Average number of
 shares outstanding 6,137,964 6,088,966 6,085,778 6,084,344
 Per share of common
 stock:
 Income from continuing
 operations before
 cumulative effect of
 changes in accounting
 principles $.13 $.13 $.67 $.62
 Net income from
 spun-off subsidiary .04 .15 .37 .43
 Provision of cost of
 spin-off, net of income
 taxes (.13) --- (.13) ---
 Cumulative effect of
 change in accounting on
 spun off subsidiary --- --- (.13) ---
 Income before cumulative
 effect of changes in
 accounting principles .04 .28 .78 1.05
 Cumulative effect on
 prior years of changes in
 accounting principles for:
 Income taxes --- --- .16 ---
 Postretirement benefits
 other than pensions --- --- (1.92) ---
 Net income (loss) .04 .28 (.98) 1.05
 Cash dividend(B) .125 .20 .525 .60
 (A) Effective Aug. 1, 1993, Tasty Baking Company (TBC) completed the spin-off of its wholly owned subsidiary, Phillips & Jacobs, Incorporated (P&J) whose results of operations are reflected herein as a discontinued operation of TBC. In addition, a provision of $804,569 has been made for costs associated with the spin-off consisting primarily of legal, accounting and other professional fees. The cumulative effect of change in accounting on spun off subsidiary reflects an adjustment to remove the deferred tax balance created by the valuation of certain P&J inventories prior to 1984 using the first-in, first-out (FIFO) inventory valuation method for consolidated reporting purposes.
 (B) The cash dividend per share amount in the third quarter of 1993 represents the new TBC quarterly dividend as a result of the spin-off of P&J.
 /delval/
 -0- 10/21/93
 /CONTACT: Kathleen M. Grim of Tasty Baking, 215-221-8784/
 (TBC)


CO: Tasty Baking Company; Phillips & Jacobs, Incorporated ST: Pennsylvania IN: FOD SU: ERN DIV

MJ-JM -- PH042 -- 5454 10/21/93 16:56 EDT
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Date:Oct 21, 1993
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